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Forex - NZD/USD edges lower but remains supported after N.Z. trade data

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Investing.com - The New Zealand dollar edged lower against the U.S. dollar on Wednesday, but still remained near four-month highs after the release of better than expected trade balance data out of New Zealand, while markets eyed the Federal Reserve's upcoming policy statement.

NZD/USD hit 0.8214 during late Asian trade, the session low; the pair subsequently consolidated at 0.8230, easing 0.10%.

The pair was likely to find support at 0.8156, the low of September 16 and resistance at 0.8318, the high of May 13.

Official data showed that New Zealand's trade deficit expanded less than expected in the second quarter, falling to NZD1.25 billion from a deficit of NZD0.66 billion in the the three months to March.

Meanwhile, investors were awaiting the outcome of the Fed's two-day policy meeting, due to conclude later Wednesday. The central bank was expected to announce plans to start tapering its USD85 billion-a-month asset purchase program.

A recent series of soft economic data raised doubts over how much the U.S. central bank will reduce its stimulus program, weighing on the dollar.

The kiwi was fractionally lower against the euro with EUR/NZD edging up 0.09%, to hit 1.6230.

Later in the day, the U.S. was to release data on building permits and housing starts.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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